TBILISI, December 17, 2019 – Georgia is an especially business-friendly country, according to the World Bank’s latest Ease of Doing Business index, in which its scored 7th place – but the country faces challenges regarding the quality of corporate reporting and level of transparency of Georgian companies.
To help address these challenges, the National Reforms Support Foundation for Accounting, Reporting and Auditing (RSF) has launched the Best Annual Report and Transparency Award, under the auspices of a joint European Union–World Bank project on Financial Inclusion and Accountability.
"The European Union congratulates Georgia, as its companies enter into the ‘first league’ of financial reporting and transparency. This is good for business and investors, and for Georgia's economic development," said Vincent Rey, Head of Cooperation of the European Union Delegation to Georgia.
Following the enactment of Georgia’s new Law on Accounting, Reporting and Auditing in 2017, this annual award is intended to encourage compliance with new reporting regulations, foster healthy competition between companies, and improve the overall standard of corporate reporting as part of the country’s quest to build up investor trust and confidence at local and international levels.
“Until now, the realm of corporate information was completely closed for investors and the public,” said Sebastian Molineus, World Bank Regional Director for the South Caucasus. “The lack of information often resulted in information asymmetries, thus leading to poor decision-making and asset allocation. Now, with Georgian legislation brought closer to the EU acquis, it’s time to improve the quality of publicly available corporate information.”
The inaugural award ceremony, held at the National Library of Georgia, showcased 16 nominated companies, and was presided over by a distinguished international panel of judges. The selection process was conducted using a robust methodology that emphasized, among other things, the provision of non-financial information which addresses intangible assets such as brand, customer reputation, know-how and goodwill that drive corporate value.
The winners in each of the 3 award categories, announced today, are as follows:
- Large Financial Institutions – JSC TBC Bank
- Large Non-Financial Institutions (with 500 or more staff) – JSC Telasi
- Small Companies (with less than 500 staff) – Georgian Leasing Company LLC
- Honorary Award – JSC Crystal
“While there are only 3 winners, all nominees deserve recognition,” said Giorgi Tabuashvili, Executive Chairman of RSF. “They all met strict criteria for shortlisting and, as such, are all winners. It is hoped that other companies can learn from these winners. Friendly competition will drive the overall quality of reporting upwards. In other words, ‘a rising tide lifts all boats.’”
This year, the award only accepted nominations from companies admitted to trading on the Georgian Stock Exchange (GSE): it is these companies that rely on finance from members of the Georgian public and overseas investors. In 2020 and beyond, however, the award is expected to expand its scope to include other, unlisted, companies.
Fore more information on the Best Annual Report and Transparency Award please visit the official website.